Brent Kovar was found guilty of defrauding 400 investors through false promises of AI-driven crypto returns and reserves.
A federal jury convicted Brent Kovar on 11 counts of wire fraud, two counts of mail fraud, and two counts of money laundering tied to a $24 million crypto Ponzi scheme. The scheme, operated through his company Profit Connect, defrauded at least 400 investors between late 2017 and July 2021.
Kovar falsely claimed Profit Connect used AI and a supercomputer to generate fixed annual returns of 15% to 30%, backed by a 100% money-back guarantee. Prosecutors revealed the company held no crypto reserves and was unprofitable, with investor funds used for personal expenses and repaying earlier investors.
Kovar is scheduled for sentencing on November 30, facing a statutory maximum of 280 years in prison. The case highlights regulatory scrutiny of fraudulent crypto investment schemes.